KLCI ends at intraday low after 11th-hour plunge

KLCI ends at intraday low after 11th-hour plunge
-A +A

KUALA LUMPUR (Aug 21): The FBM KLCI closed 8.16 points or 0.51% lower today after an 11th-hour plunge following a sharp drop in prices of several component stocks and as investors looked ahead to US interest rate updates this week.

At 5pm, the KLCI closed at its intraday low at 1,594.59 as components including Petronas Gas Bhd, MISC Bhd and CIMB Group Holdings Bhd ended among Bursa Malaysia top decliners. Leading gainers included automotive stock MBM Resources Bhd.

AmInvestment Bank Bhd head of retail research Joseph Chai Lipe Tatt said the research firm expects the KLCI to stay within 1,572 and 1,620 for the rest of this month.

"Only if the KLCI surpasses the 1,620 level can we expect a bigger upside swing. If not, it will stay range bound until towards the end of this month.

"I think the market is engaging on a more thematic play, where the theme for this week is automotive. We can see that tech stocks are taking a breather now, so a lot more attention is given to automotive stocks," Chai told theedgemarkets.com today.

Globally, investors will on Wednesday (Aug 21) take cue from minutes of the US Federal Reserve's most recent meeting for hints on further interest rate cuts. Investors are also looking ahead to the central bank's annual Jackson Hole seminar later this week and a Group of Seven summit this weekend for clues on what additional steps policymakers will take to boost economic growth, according to Reuters.

Reuters reported that Asian shares flatlined on Wednesday as worries about global recession and endless trade wars wrestled with hopes for more monetary and fiscal stimulus to keep growth going.